The IRS reminds taxpayers they may have money waiting for them. An estimated 1.3 million taxpayers didn’t file a 2017 Form 1040 federal income tax return and are due a refund.

Here are some things taxpayers should know about these unclaimed refunds:

• To collect the money, taxpayers must file their 2017 tax return with the IRS no later than this year’s tax deadline, Monday, May 17.
• When a taxpayer who is getting a refund does not file a return, the law gives them three years to claim that tax refund. If the taxpayer does not file a tax return within three years, the money goes back to the U.S. Treasury. For 2017 tax returns, the three-year window closes May 17, 2021.
  
• The law requires taxpayers to properly address and mail the tax return to the IRS. It must be postmarked by the May deadline.
• The IRS may hold the 2017 refunds of taxpayers who have not filed tax returns for 2018 and 2019.
• The unclaimed money will be applied to any amounts still owed to the IRS or a state tax agency. The money may also be used to offset unpaid child support or past due federal debts, such as student loans.
• By failing to file a tax return, people stand to lose more than just their tax refund. Many low-and moderate-income workers may be eligible for the earned income tax credit. For 2017, the credit was worth as much as $6,318. The EITC helps individuals and families whose incomes are below certain thresholds. The 2017 thresholds were:
  • $48,340 for those with three or more qualifying children;
  • $53,930 if married filing jointly
  • $45,007 for people with two qualifying children; $50,597 if married filing jointly
  • $39,617 for those with one qualifying child; $45,207 if married filing jointly
  • $15,010 for people without qualifying children; $20,600 if married filing jointly
• Current and prior year tax forms are available on the Forms, Instructions and Publications page of IRS.gov or by calling toll-free to 800-TAX-FORM (800-829-3676).
• Taxpayers who are missing forms W-2, 1098, 1099 or 5498 for the years 2017, 2018 or 2019 should request copies from their employer, bank, or other payer. Taxpayers who are unable to get missing forms can order a free wage and income transcript at IRS.gov using the Get Transcript Online tool. Taxpayers can use the information on the transcript to file their tax return.

Tax Tip 2021-48